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US residents told to cut water use while AI data centres guzzle millions amid drought

US residents told to cut water use while AI data centres guzzle millions amid drought

Posted on 31 July 2025 By jobuzo

Texas residents told to reduce water use as AI data centres guzzle millions of gallons

As Texas struggles with a drought, more artificial intelligence (AI) data centres are popping up across the state, consuming massive amounts of water to cool their servers — even as residents face restrictions on their own water use.

To make matters worse, pushback from locals has had little effect, as officials are limited by state laws.

Loose regulations in Texas attract data centres

According to The Austin Chronicle, many data centres are being built in the state due to its loose regulations on power and water usage.

As the only independent energy grid in the United States (US), Texas appeals to businesses with its lower energy costs and access to groundwater for cooling.

Source: KVUE on YouTube

One such data centre is the Stargate campus in Abilene, a massive facility backed by OpenAI, Oracle, and SoftBank.

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Once operational, it’s expected to consume enough electricity to power around 750,000 homes. To meet that demand, the project includes plans to build its own natural gas power plant.

With more centres like these projected to be built, experts are raising concerns about water availability for residents.

Larger data centres can use up to 4.5 million gallons of water per day. The city of Austin already has 47 such centres.

water ai data centres drought

Source: KVUE on YouTube

The Houston Advanced Research Center predicts that data centres in Texas will consume 49 billion gallons of water in 2025.

That figure is expected to balloon to 399 billion gallons by 2030, accounting for nearly 7% of the state’s total projected water use.

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This is especially troubling as many parts of Texas are already experiencing severe drought. Residents have even been asked to reduce their water usage as a result.

According to CBS Austin, some experts have suggested shifting workloads to nighttime hours when it’s less costly to cool servers.

Others have proposed rainwater collection systems to help reduce reliance on municipal supplies.

Locals push back against data centres built near homes

The surge in data centres has not gone unnoticed by local residents, many of whom have pushed back against new developments near their homes — but with little success.

According to KUT, locals are increasingly concerned about the environmental impact these facilities may have.

One Hays County resident likened the situation to a gold rush that will only benefit a select few.

“It’s a rush to the market because a few people are gonna make billions,” she said.

Source: Solen Feyissa on Unsplash, for illustration purposes only

In an effort to rally support, she even went door-to-door to encourage her neighbours to attend a workshop hosted by the developers of the new data centre in her area.

While the community turned out in support, county officials said their hands were tied.

“You all spoke so passionately, and you burned valuable time of your life, on a beautiful day out here,” one official told residents. “And it’s gonna happen anyway.”

A range of factors work in the data centre’s favour.

For one, the facility is located outside city limits, meaning it’s not subject to city regulations. County governments have significantly less authority when it comes to enforcing restrictions.

To make matters more complicated, the property spans two counties. Hays County officials only have jurisdiction over permits for half the development.

Disheartened by the outcome, some locals have taken to photographing the area, hoping to preserve the natural environment through images before it changes for good.

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Have news you must share? Get in touch with us via email at [email protected].

Featured image adapted from KVUE on YouTube and Sanket Mishra on Canva, for illustration purposes only.

US residents told to cut water use while AI data centres guzzle millions amid drought

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